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Service Tax exempted on Sub brokers of Commodity exchange up to 30.06.2012

No
Service Tax required to be paid on Services provided by an Authorised Person or
Sub-Brokers to Member of Commodity Exchange up to 30th June, 2012

The
Central Government vide Notification 03/2014-ST dated February 3, 2014 has
provided that no Service Tax is required to be paid on services provided by an
authorised person or sub-brokers to the member of a Commodity Exchange, in
relation to a forward contract, on which Service Tax was not being levied
during the period commencing from the 10th day of September 2004 and
ending with the 30th day of June, 2012 in accordance with the
prevalent practice.

In
exercise of the powers conferred by section 11C of the Central Excise Act, 1944
(1 of 1944), read with section 83 of the Finance Act, 1994 (“the Finance Act”) the Central
Government has directed that the service tax payable on the services provided
by an authorised person or sub-broker to the member of a recognised association
or a registered association, in relation to a forward contract, shall not be
required to be paid in respect of such taxable service on which the service tax
was not being levied during the period commencing from the 10th day
of September 2004 and ending with the 30th day of June 2012 in
accordance with the prevalent practice.

The
Central Government is satisfied that a practice was generally prevalent
regarding levy of service tax (including non-levy thereof), under section 66 of
the Finance Act, on services provided by an authorised person or sub-broker to
the member of a recognised association or a registered association, in relation
to a forward contract, and that such services were liable to service tax under
the Finance Act, which was not being levied according to the said practice
during the period commencing from the 10th day of September 2004 and
ending with the 30th day of June 2012.